China’s exports continued to be strong in May, with 13 consecutive months of positive export growth since last April and eight consecutive months of positive import growth, and at an 11-year high since March 2010.
The Group of Seven (G7) reached a historic agreement over the weekend to set a global minimum corporate tax rate of at least 15%, down from the Biden administration’s initial proposal of 21%, with Facebook and Google both supporting it, which some analysts say is good for the dollar in the long run.
U.S. Treasury Secretary Yellen dropped a “big” bombshell over the weekend, saying it would actually benefit both U.S. society and the Federal Reserve if the final level of interest rates in the U.S. were slightly higher, and that she did not think the $400 billion annual spending level of the Biden package would be enough to trigger excessive inflation.
The market is focused on Thursday’s release of U.S. CPI data for May, which had jumped 4.2 percent year-over-year in April, the fastest gain since 2008. Analysts say that if consumer prices continue to rise, it could cause the Fed to pull back on some of its easing.
Biotech leads Nasdaq turn higher as Facebook, Google and Eli Lilly hit record highs, Chinese education stocks plunge early in the session, 51Talk turns up strongly, Pan-European Stoxx 600 hits two-day high
On Monday, June 7, the Dow and S&P 500 opened slightly higher, biopharmaceuticals and infrastructure sector multi-stock higher, the S&P broad market is only 0.2% away from a new record high, the Nasdaq fell 0.2% and briefly lost 13,800 points. At midday, the Nasdaq turned up, the Dow and S&P both turned down and fell 0.2%, but the Russell 2000 small-cap index outperformed the broader market, maintaining a 0.9% gain, the Nasdaq Biotechnology Index rose more than 1%.
Two hours after the opening of the U.S. stock market, U.S. stocks collectively turned down, the Dow expanded its decline to nearly 182 points or down 0.5%, and the S&P 500 expanded its decline to 0.3%. But the Nasdaq then turned up again, the highest intraday rise of 0.5%, forcing 13,900 points.
As of the close, the Dow and the S&P 500 index are from last Friday’s one-month high set slightly back, the Dow closed down 126.15 points at 34,630.24 points, down 0.36%; S&P broad market closed down 3.37 points at 4,226.52 points, down 0.08%; Na composite index rose for two days, closing up 67.23 points at 13,881.72 points, up 0.49%. Refreshing the highest since May 3. Russell 2000 small-cap stocks outperformed the broader market, closing up 1.43%, breaking through 2300 points, the highest in the past three months since March 17.
Analysis points out that the S&P broad market has attempted to make new highs at the beginning of this week, mainly boosted by optimism that the U.S. economy will reopen in the summer. On the one hand, the U.S. economy is recovering faster than major developed economies, and the May nonfarm payrolls data released last week was strong enough to support investor confidence in the U.S. economic recovery, while not strong enough to prompt the Federal Reserve to change policy in the near term.
FAAMNG star tech stocks only Amazon and Nifty down, Facebook and Google record highs:.
Facebook opened lower and rose nearly 2%, gaining for a second straight day and closing at an all-time high. Apple turned from a 0.8% drop to a slight gain on the first day of the Worldwide Developers Conference (WWDC) held online. Amazon fell 0.3%, losing $3,200 for the second time in three weeks. Microsoft rose more than 1%, rising for two days to the highest since April 28. Nifty fell 0.8% after edging lower, and Google parent Alphabet rose 0.4% to close at an all-time high after being fined 220 million euros by the French antitrust agency in a settlement over its abuse of advertising in the tech sector.
Tesla once fell 2.7%, daily low fell below $583, closing turned up more than 1%, back on $600, cumulative decline of 14% so far this year. EV Sales released April global electric car market sales data, Tesla share fell 2% in a single month, is expected to lead the position soon replaced by the rising mass; Musk officially canceled the flagship sedan Model S most expensive Plaid Plus model; in response to rumors of using quaternary lithium batteries in the domestic Model Y model, Tesla responded to SSE that no more information is available at this time.
In addition to Tesla, U.S. stocks of new energy automotive stocks rose collectively, Workhorse once rose 14%, Lordstown closed up more than 7%, Fisker rose more than 9%, QuantumScape rose more than 6%. Chinese “three fools” to take advantage of the momentum, ideal and Azera Motors closed up more than 4%, Xiaopeng car rose more than 3%.
Chip stocks fell more than 1% during the day, and narrowed in late trading. Philadelphia Semiconductor Index fell 1.3% at the low of the day, closing down 0.7%, further deviating from the historical highs and fell below 3200 points. Nvidia fell 1.6% after turning up, TSMC maintained a decline of more than 1%. This follows pessimistic warnings from industry giants that the chip shortage extends until at least mid-2022; German Chancellor Angela Merkel said the global chip shortage is hindering economic recovery from the epidemic.
Retail holdout stocks remain strong. AMC Theatres topped out at over 24%, with daily highs pushing the $60 mark, closing up nearly 15%; Goss Electronics once rose 14.5%, closing up over 2%, GameStop closed up nearly 13%, 3B Homes closed up over 7% after rising over 11%; BlackBerry rose nearly 14%, approaching the highest since the January 27, or last retail vs. institutional short-selling war, set last Thursday. The SEC said it is closely monitoring volatility in specific stocks, looking for suspected stock price manipulation and other forms of (market participant) misconduct.
Chinese stocks were generally weak. Alibaba and Jingdong fell nearly 1%, Tencent ADR and Baidu dropped 2%, Beili Beili fell nearly 4%, and Poundland fell more than 3%, but Youxin used cars rose more than 10%.
Chinese education stocks continued to plunge at the beginning of the session, then the decline narrowed, 51Talk strong turn up.
New Oriental fell over 12% at its deepest, closing down 3.8% and nearly 16% at its deepest, closing down 6.4%, both companies were downgraded by Credit Suisse; Highway fell over 10% at its deepest, closing down 0.4%, 51Talk closed up over 9% after falling nearly 4%. But the above four stocks have fallen so far this year have been cut, including the largest decline this year for highway, down nearly 73%, compared with the end of January high cumulative drop of 90%.
Other stocks with big changes include.
U.S. stock Beyond Meat, the No. 1 artificial meat stock, rose as much as 7.3% to close up nearly 5%, a three-and-a-half month high since Feb. 19, as the company said it was expanding production capacity in Australia.
MicroStrategy, known for its big bitcoin purchases, fell more than 3% to a two-week low, as the company expects at least $284.5 million in impairment losses due to the drop in bitcoin prices, but will raise $400 million to buy more bitcoin through a bond issue.
The U.S. Food and Drug Administration (FDA) approved Biogen’s Aduhelm for the treatment of Alzheimer’s disease, the first approval of a new drug for the condition in nearly 20 years, but required the company to continue clinical trials after approval. biogen resumed trading after a three-hour intraday trading halt, surging nearly 64% and closing up more than 38%, a six-year high since March 2015. Eli Lilly and Company, which is also working on a new drug for the same condition, rose more than 10 percent and closed at its highest.
U.S. nano-concept stocks rose collectively, with Arbutus Biopharma closing up more than 11%, Pacific Biotech up 7%, Arrowhead Pharmaceuticals and Novavax Pharmaceuticals up more than 6%, Selecta Biosciences and Kals Pharmaceuticals up nearly 5%.
In Europe, shared office provider IWG closed down more than 10%, once down 16% during the day, the company warned that the new strain of New Crown virus new variant will lead to a sharp drop in profits.
The pan-European Stoxx 600 index closed up 0.22% at 453.56 points on Monday, hitting a record high for the second consecutive day, with the best performing auto stocks up nearly 1% and the worst performing basic resources sector down 1.6%. France’s CAC 40 index, the FTSE 100 index, Italy’s FTSE MIB index closed up, and Italian stocks rose nearly 1%, Germany’s DAX 30 index fell to a record high, after four consecutive days to close at a new high.
Waiting for this week’s Iranian nuclear talks triggered profit-taking, international oil prices fell 1% from multi-year highs
WTI July crude futures closed down $0.39, or 0.56%, at $69.23 per barrel. Brent August crude futures closed down $0.40, or 0.55%, at $71.49/barrel.
U.S. oil WTI had topped $70 a barrel in early Asian trading on Monday for the first time since October 2018, as U.S. stocks moved lower and dipped below $69 during the session, falling as much as 1% during the day. International Brent broke through $72 per barrel for the first time since 2019 on Friday, with U.S. stocks forcing down to $71 in Monday’s session and falling as deep as 1% intraday.
Analysis points out that the market awaits the outcome of the fifth round of Iranian nuclear talks this Thursday, June 10, does not rule out the lifting of U.S. economic sanctions on Iranian oil exports, which will increase crude oil supply, triggering investors to take advantage of profit-taking. Over the past two weeks, oil prices have risen due to a rebound in demand for fuel oil during the peak summer travel season in Europe and the United States, with global oil supply expected to be smaller than demand in the second half of the year.
Wall Street News has mentioned that the “commodity flag bearer” Goldman Sachs since March this year, oil prices fall is a good opportunity to buy, predicting that oil will reach $ 80 per barrel this summer, Goldman Sachs also in May when oil prices retreat, once again reiterated that oil prices will rise to $ 80. Meanwhile, Wall Street traders have begun betting on $100 per barrel crude oil call options delivered in December 2022.
Spot gold topped $1,900 at one point, while copper fell four times in five days to close below $10,000
COMEX August gold futures closed up 0.4% at $1898.80 per ounce.
Spot gold once fell 0.5% during the day, the daily low lost $1882. With U.S. stocks turned down collectively at midday and the dollar weakened, spot gold turned up during the day, rebounding more than $18 from the day’s low, back above $1890, the daily high also once broke the $1900 round figure or up 0.5%, erasing most of the losses since June 3. Spot silver once fell 1%, then also turned up and up to 0.6%, forcing the $28 mark.
OANDA senior market analyst Jeffrey Halley also said that only a sharp steepening of the U.S. bond yield curve would change gold’s bullish fundamentals.
London base metal futures generally closed lower, with LME copper futures falling for the fourth time in five days to close below $10,000 for the third day in a row. LSE aluminum also fell four times in five days and returned to one-week lows. LON tin closed down $340 lower, retreating from a new ten-year high, but standing firm above the $30,000 mark. LunLead was the only one to close higher, halting a two-week losing streak and reapproaching a two-week high.
Domestic base metals overnight futures mostly rose, but Shanghai copper closed slightly down 0.03% and Shanghai tin closed down 0.12%. Domestic futures overnight ferrous, chemical and agricultural products fell in general, with iron ore down 3.67%, threads, hot coils and glass all down over 2%, coke, coking coal, stainless steel, rubber, Zheng alcohol, plastics, PVC, asphalt and fuel all down over 1%.
Dollar falls back below 90, offshore yuan returns above 6.39, bitcoin falls below $36,000 after being disliked by Trump, ethereum up nearly 2%
The dollar index was higher in the European market, once up 0.2% and traded at 90.30, but the U.S. stock market turned from up to down during the day, back below the 90 mark, the deepest intraday drop of 0.3% to trade at 89.91. The dollar index had fallen on Friday because May non-farm payrolls were not as expected.
The euro against the dollar stopped falling and turned up nearly 0.3%, once breaking the 1.22 barrier, and the Australian dollar, considered an indicator of risk appetite, also stopped falling and turned up 0.4% against the dollar, basically recovering all the losses since June. The offshore yuan advanced to 6.3849 against the dollar, regaining the 6.39 mark.
Analysts say the G7 agreement on the world’s lowest corporate tax rate could lead to a global capital repatriation, which would benefit the dollar in the long run. The ECB and the Fed are currently analyzing the matter of “willingness to discuss tapering the pace of QE bond buying”, which may depress the euro’s gains in the short term.
Bitcoin, the largest cryptocurrency in terms of market capitalization, fell 1% in 24 hours to fall back below $36,000, while ethereum, the second largest in terms of market capitalization, rose nearly 2% to stand steady above $2,700, with a daily high of $2,800. According to CoinMarketCap.com, mainstream cryptocurrencies have fluctuated narrowly in the past 24 hours, with relatively more gainers.
Former U.S. President Donald Trump told the media bluntly, “Bitcoin is a scam …… I don’t like it, it seems to be another currency competing with the dollar.” The U.S. Justice Department said today that 63.7 bitcoins worth about $2.3 million were recovered and that “cyber attacks for the purpose of extortion constitute a national security threat.”
European and U.S. Treasury yields both turn higher, 10-year U.S. bond yields remain near one-week lows
10-year U.S. bond yields rose by up to 2.2 basis points during the day, the daily high to 1.582%, the U.S. stocks ended the day narrowed to 1 basis point, trading less than 1.57%, still close to a week low. 30-year U.S. bond yields once up 2.4 basis points to a daily high of 2.263%, the U.S. stocks ended the day with the same gains narrowed, trading less than 2.25%.
In late European trading on Monday, the yields on benchmark government bonds of major European countries stopped falling and turned up. Germany, France, Britain, Greece 10-year bond yields were up more than 1 basis point, Italy 10-year bond yields up more than 4 basis points.